The dollar seems to be showing strength and has not had a major down day this week. The continuous days of rising shows that the mini rally can turn into a possible reversal. It’s going to be very important to see where this dollar pulls back to but judging by the recent price action, it’ll be fairly deep.
I took a 2 week break from blogging and trading after a big loss 2 weeks ago. During my break I was still trading but decided not to post because the markets were so slow and boring. During the FOMC statements and French elections, markets were too boring to constantly trade, in fact, I lost money by forcing trades. I’m back now and ready more than ever. Hopefully the markets can wake up and some good trade formations can form.
Yesterday was a really great day for me as I shorted the dollar. I woke up to a London session that pretty much gave back all the dollar’s Trump induced sell-off and traded NY without much thought. I tried chasing the dollar shorts again but failed to do so with low holiday liquidity.
NY was a bad session for me today because I was being too reckless with my trades. Today was a great example for me to not get too caught up on my winnings and not maintaining focus. The Easter holiday liquidity made the markets difficult to trade and as I loss more and more, I traded more desperately. As of now, I’m still waiting for the dollar to sell off again, which is failing to do so. I lost a bit on shorting USD/CAD and trying to force a long EUR/USD trades. Right now I’m holding a small EUR/USD trade that I hope will end in profit. I still believe the dollar has some falling to do. All in all, a failure of a day.
The price action today was pretty messy and jumpy. There definitely was volatility for the NFP tomorrow, which I will be away for. Today wasn’t a good trading day for me and got tricked out thinking the dollar was selling off hard. It was one of those quick in’s and out days. I’ll be taking off tomorrow, going on a mini vacation. As long as the employment number isn’t too far off, I think the dollar bulls will continue to power through.
I had a great scaled set up with EUR/USD shorts but due to the larger than usual size that I normally trade, I got scared and backed off. Revenge trading is tough because the pressure to make back losses is much higher. I’m trying to trade larger than regular sizes to compensate for the losses, however, it gets more frightening to hold onto trades because I don’t want to make my losses bigger than it is. Revenge trading is not necessarily bad as long as you keep yourself grounded.
The circle is the area that I pulled my shorts since I was building up throughout that wedge. It was only after the big drop that I saw the resistance. Today was just a bad trading day.
The BIG juicy dollar movement happened during the open on Monday which I didn’t trade since it was President’s Day. The dollar bulls started their moves on Friday and it continued off into the weekend. For the start of NY, I was tricked into trading during a dollar retrace which got me some losses. All in all, I still think the dollar is headed higher due to the anticipated rate hike, and it failed to sustain the EUR/USD break out.
The equities market started out with a huge downward snap, Yen shot up high, and the Vix was originally up about 6% for the day. London was hectic with the dollar surging high however, everything reversed during NY. It was a very strange reversal and traders suspected the crazy opening from Trump’s immigration ban over the weekend. It’s no surprise that the executive order sent shock waves through the markets.
Price action was crazy during London and during fast moving times like today, I always panic. I end up closing my profitable trade early, I tend to chase prices, and I’m trade very emotionally. I made an enormous amount of mistake today that I’m very disappointed in. I’m not too comfortable with scalping during high volume times like this so maybe it’s even best that I sit out during high-tide.
President-Elect Donald Trump gave a press conference at the Trump Tower today which markets responded with chaos. The equities markets were rattled by his comments, specifically the pharma companies, but the chaos crossed over to the Forex markets as well. The dollar sold off with the safe haven Yen getting bought heavily. Right now, things are too unsure of what the new President will do during his time and looks like the markets are skeptical.
I mostly scalped throughout the day and didn’t place any trades during Trump’s conference. A lot of the moves looked like panic selling but I wasn’t about to trade during sporadic movements. For now I’m looking to see how the dollar will close for the week and see if it’ll recover it’s losses.
It was a very interesting start to a new year in the Forex market. The dollar had a brief rally but was quick to reverse after pushing the EUR/USD to newest lows since 2013. The strength in the dollar bulls couldn’t manage to hold through and the rest of the session was a slow reversal.
I took a dabble on a USD/CAD short since it was consolidating, but it doesn’t seem like it wants to break out just yet. The rest of the session was tricky to trade so I didn’t bother placing new trades. I’ll wait for the dust to settle.
Today was one of those rare days where Asia session had more movement compared to London and New York. Since Asia is a day ahead of us, while it’s still Thursday in the states, Asia just began their Friday which means it’s the last trading day of 2016. The dollar had a huge movement down while the EUR/USD shot up over 100 pips which soon faded slowly after the initial burst. I was able to scalp the movements but I’m also expecting tomorrow to be promising since it’ll be London’s and NY’s last trading days as well.